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The Zacks Analyst Blog Highlights: SPS Commerce, BJ's Restaurants, Altra Industrial Motion, BG Staffing and Kforce

Zacks Equity Research
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For Immediate Release

Chicago, IL – August 7, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SPS Commerce, Inc. SPSC, BJ's Restaurants, Inc. BJRI, Altra Industrial Motion Corp. AIMC, BG Staffing, Inc. BGSF and Kforce Inc. KFRC.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

5 Stocks to Buy on a Historic Job Growth Streak

The United States has seen another spurt in hiring in July after two months of solid show, indicating that companies are still able to find workers in a strengthening economy. The headline jobless rate also edged down. Let us, thus, look at stocks that have made the most of the promising jobs report.

Payrolls Rise for 94 Straight Months

The U.S. economy added 157,000 new jobs in July despite extensive complaints among business houses about shortage of skilled labor, per the Labor Department. Even though the number of jobs added in July fell short of 195,000 predicted by market pundits, U.S. employment has risen for 94 successive months, the longest jobs-expansion streak on record.

Ryan Detrick, senior market strategist at LPL Financial, added that “the headline number might have missed targets, but remember May and June were revised higher. In fact, those two months are now the two strongest months since July 2016.”

The jobless rate, in the meantime, dropped to 3.9%. This is the eighth time that the unemployment rate has fallen below the 4% mark since 1970. The current unemployment rate is now at a nearly two-decade low. The real unemployment rate, also known as the U6, contracted to 7.5% from 7.6%. The U6 now stands at a level lower than it was during the 2007-2009 recession.

Broad-Based Jobs Additions

Business services, leisure and hospitality, and manufacturing primarily led job gains in the month of July. White-collar professional firms added the maximum number of jobs in the month, the increase being 51,000 positions. Among such gains, more than half came from administrative and supportive services.

Industries that include restaurants and bars, performing arts, spectator sports and museums took on an additional 40,000 workers, adding to their solid May and June gains. Meanwhile, manufacturing beefed up by 37,000 staff, the strongest gain since December. Factory jobs growth accelerated for the third straight month in July. Needless to say, the manufacturing sector added 327,000 new jobs over the past year, representing the best 12-month stretch in 23 years.

How to Play the Steady Job Addition?

July’s jobs report painted a pretty picture of an economy with opportunities for almost everyone. Such a robust hiring spree indicated that the aforesaid industries are in an expansion mode and their businesses are churning out huge profits. Hence, investing in the same seems prudent for now.

Further, the latest job addition bodes well for staffing companies. Additionally, the Conference Board’s Employment Trends Index was 108.94 in June, up from 107.72 in May. When compared to the year-ago level, the index shows a rise of 5.2%.

5 Solid Choices

We have picked five such stocks that should make meaningful additions to your portfolio. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

SPS Commerce, Inc. provides cloud-based supply chain management solutions. Currently, the company has a Zacks Rank #1. In the last 60 days, six earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 17.5% in the same period. The company’s projected growth rate for the current year is 75%, while the Business - Services industry is expected to gain only 7.1%.

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States. The company currently has a Zacks Rank #1. In the last 60 days, nine earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings went up 6.5% in the same period. The company’s projected growth rate for the current year is 50.4%, while the Retail - Restaurants industry is expected to gain only 10.3%.

Altra Industrial Motion Corp. designs, produces and markets mechanical power transmission components. Currently, the company has a Zacks Rank #1. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings increased 2.8% in the same period. The stock’s projected growth rate for the current year is 23.9%, while the Manufacturing - General Industrial industry is expected to gain 23.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

BG Staffing, Inc. provides staffing services in the United States. It operates through three segments: Multifamily, Professional, and Commercial. The company currently has a Zacks Rank #1. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 12.9% in the same period. The company’s projected growth rate for the current year is 47.5%, while the Staffing Firms industry is expected to gain only 19%.

Kforce Inc. provides professional staffing services and solutions in the United States and internationally. It operates through Technology (Tech), Finance and Accounting (FA), and Government Solutions (GS) segments. Currently, the company has a Zacks Rank #2. In the last 60 days, four earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings advanced 2.3% in the same period. The stock’s projected growth rate for the current year is 43.3%, while the Staffing Firms industry is expected to gain only 19%.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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SPS Commerce, Inc. (SPSC) : Free Stock Analysis Report
 
Altra Industrial Motion Corp. (AIMC) : Free Stock Analysis Report
 
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
 
Kforce, Inc. (KFRC) : Free Stock Analysis Report
 
BG Staffing Inc (BGSF) : Free Stock Analysis Report
 
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